It Looks Like Man Wah Holdings Limited's (HKG:1999) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Man Wah Holdings to hold its Annual General Meeting on 30th of June
• Salary of HK$1.45m is part of CEO Man Li Wong's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Man Wah Holdings' EPS fell by 2.2% and over the past three years, the total loss to shareholders 43%

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Shareholders will probably not be too impressed with the underwhelming results at Man Wah Holdings Limited (HKG:1999) recently. At the upcoming AGM on 30th of June, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Man Wah Holdings

How Does Total Compensation For Man Li Wong Compare With Other Companies In The Industry?

According to our data, Man Wah Holdings Limited has a market capitalization of HK$16b, and paid its CEO total annual compensation worth HK$2.0m over the year to March 2025. That's a slight decrease of 5.7% on the prior year. In particular, the salary of HK$1.45m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Hong Kong Consumer Durables industry with market capitalizations between HK$7.8b and HK$25b, we discovered that the median CEO total compensation of that group was HK$2.4m. So it looks like Man Wah Holdings compensates Man Li Wong in line with the median for the industry. Furthermore, Man Li Wong directly owns HK$10b worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. Our data reveals that Man Wah Holdings allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Man Wah Holdings Limited's Growth

Over the last three years, Man Wah Holdings Limited has shrunk its earnings per share by 2.2% per year. In the last year, its revenue is down 8.2%.

Its a bit disappointing to see that the company has failed to grow its EPS. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Man Wah Holdings Limited Been A Good Investment?

With a total shareholder return of -43% over three years, Man Wah Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Man Wah Holdings that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.